The official cash rate has been left at a record-low 2.5 per cent for the 14th consecutive month as most economists had predicted.

Financial Services Council chief economist James Bond said the Reserve Bank would wait to see how the employment trend settles over the coming months.

“The RBA board will be pleased with the fall in the Australian dollar, and should the currency persist at a lower level, this will give the bank the capacity to raise rates earlier to take the heat out of the housing market,” he said.

ING Direct’s head of treasury, Michael Witts, said the Reserve Bank would be reluctant to increase the cash rate until the Australian dollar dropped well under US$0.90.